Teves asks review of NRA Bill

Congressman Herminio Teves, Senior Vice Chairman of the House Committee on Ways and Means, called for the withdrawal of the committee approval of the National Revenue Authority (NRA) bill after expressing serious concerns on the said bill.

In support to Southern Leyte Representative Aniceto Saludo’s move for reconsideration of the NRA bill, Teves said that the abolition of the Bureau of Internal Revenue (BIR), and replacing it with a corporate entity would not effectively address tax collection problems that substantially contribute to the country’s declining revenue performance.

Acting as chairman of the ways and means committee in the absence of Chairman Julio Ledesma, Teves joined Saludo’s petition that approval of the bill be deferred and recalled from the Committee on Appropriations where it is now pending and for it to be referred to the appropriate committee, which is the Committee on Government Reorganization.

In the committee’s regular meeting on Tuesday, Teves said that the NRA bill must be withdrawn from the Committee on Appropriations in order for the NRA bill to be reevaluated.

Teves also reiterated his position in a memorandum he addressed to the Committee on Ways and Means. Teves said he has serious concerns on the Committee’s approval of the NRA Bill. He explained that the bill, in its present form would not ensure radical improvements in revenue collection efficiency, which is primarily the reason why the Bureau of Internal Revenue is being proposed for abolition. Because of this, Teves is calling for the withdrawal of the committee’s approval of the substitute bill creating the NRA and to conduct further committee deliberations and study.

He explained that the substitute bill fails to provide for effective mechanisms on enhancing transparency in the proposed NRA. He also said that the committee has failed to discuss and examine the forms and substance of performance contracts as the NRA would be managed through contracts. “We have to ensure that appropriate safeguards are incorporated in these contracts”, Teves added.

In February, Saludo delivered a privilege speech denouncing proposals to abolish the BIR which would displace at least 12,000 of the bureau’s employees. He also criticized referral of the said bill to the Committee on Ways and Means which railroaded NRA’s approval even without holding the proper authority to approve the same.

He also raised the issue on constitutionality of the said proposal because only the state has the sovereign authority to collect taxes.

In an effort to terminate interpellations, Saludo was asked to concede by then acting Majority Leader Rimpy Bondoc in exchange with the commitment that the NRA bill would be recalled from the Committee on Ways and Means. On Monday, Saludo made a parliamentary inquiry asking for the status of this commitment but Majority Leader Neptali Gonzales denied having any knowledge about the arrangement.

For this, Saludo denounced the majority’s inconsistency and denial of responsibility in the commitment made by Bondoc to Saludo. “I cannot understand the indecent haste and the extraordinary effort of the majority leader in trying to fast-track the approval of this bill even at the expense of Congressman Bondoc’s honor and integrity”, Saludo said.